Christian Refinance Mobile Home Loan
A Christian refinance mobile home loan works much the same as a regular home mortgage refinance with a few minor tweaks. And the same reasons brick and mortar home owners refinance are also the reason why many mobile home owners refinance. Debt consolidation or pay off, medical bills, a new car or truck, a vacation or just wanting more discretionary income can be among the purposes for deciding to get a refinance mobile home loan. For many people facing hard economic times, this type of lending agreement can be a real help. But there are some things a person needs to know before signing on the bottom line.
To begin with, a term called LTV is often bandied about when wanting to a refinance mobile home loan. This acronym stands for loan to value and describes how much of a refinance mortgage can be made on someone's manufactured residence. For instance, if a lending company offers a refinance lending agreement on a mobile home worth forty thousand dollars, and the LTV limit the loan company lending practices allow is ninety five percent, a new mortgage for thirty eight thousand dollars will be approved. If a person only owes twenty four thousand dollar on the residence, then twelve or thirteen thousand dollars can be pocketed if a new mortgage for thirty eight thousand dollars is secured. However, if a person still owes thirty five thousand dollars on the mortgage, refinancing for thirty eight thousand and pocketing three thousand may not be a great deal. The reason is that the costs to secure the new loan, often called points may devour a great deal of the three thousand dollar difference.
Unlike getting a mortgage on a brick and mortar property, there are age issues when a person begins to think about a refinance mobile home loan. The reason is the quick depreciation a manufactured home often suffers. For instance, cash out mortgage in many states is only available on doublewide structures made after 1976 and singlewide homes made after 1991. A manufactured residence is typically eligible for a cash out mortgage if made after 1991. "Therefore being justified by faith we have peace with God through our Lord Jesus Christ." (Romans 5:1)
Besides cashing out some of the equity a person may have in their mobile home property, there may be another reason a person decides to consider a refinance mobile home loan. For instance, perhaps an owner is tired of see her monthly payment fluctuate because the lending agreement is a variable rate loan. The stability of a fixed interest rate and the receiving the same mortgage bill each month can be attractive to some owners. Or possibly an individual wants to lower her monthly payments by switching to a lower interest rate and refinancing seems like a good option. Or perhaps an owner wants to speed up the pay off schedule and own the property in five years instead of ten. Refinancing to get a higher monthly payment over a five year period can accomplish that goal. Of course, just paying more each month above the regular mortgage payment can accomplish the same thing without the added cost of a refinance lending agreement.
Anyone can apply for a refinance mobile home loan, however not everyone will be approved for a new mortgage. A lending company will always look at the debt to income ratio as one of the criteria for lending to a customer. This ratio is based on how much income is made each month by the borrower and how much debt the borrower must turn around and pay back out for charge cards, car payments, and other outstanding debts. So take all one's income before taxes, divide it all by the entire amount of the credit bills someone pays (not utilities, food, gasoline, etc.) and see what the number is. Anything over forty to fifty percent will eliminate most people from being able to get a refinance mobile home loan. Do not make any more credit purchases in the weeks before going to see a loan officer, for this may prohibit a lending agreement being secured.
A lender will also want to check a borrower's work history to verify steady employment and will want to have the manufactured home appraised to check on its actual condition and value. To consider a refinance mobile home loan, owners need to understand that depending on the circumstances for borrowing, refinancing a mortgage is like starting over again. And if the money that is received in a cash out mortgage is spent on items that depreciate or quickly wear out, the long term effect of paying for those things can be quite damaging to someone's emotions, often leading to depression and sadness. Before ever agreeing to a refinance, take a lot of time thinking about the reasons and motives behind such a drastic financial decision. Seek out the wisdom of someone who really knows how to handle money wisely.
Spend much time looking around for the lender that will provide the best refinancing rates. Get loan offers from at least three or more lending companies. Do not be afraid to take the offers and show them to the other lenders. In other words, make the lenders compete for your business. Remember that if the borrower shows any weakness in terms of despair or begging, lenders will take advantage of that persona. Remain in the driver's seat and really get the best deal!
Christian Mobile Home Refinancing LendersWhen searching for mobile home refinancing lenders, many issues must be considered, yet stricter construction requirements and the increased willingness of lenders to customize loans for their customers can make refinancing an attractive solution for mobile home owners. It used to be fairly difficult to obtain a mortgage for a mobile or manufactured (pre-fabricated) home. Lenders worried about the quality of materials used in building these homes, knowing that factories were likely to reduce building costs wherever possible. Unlike 'regular' homes, where the land and house both served to secure the loan, mobile home refinancing lenders fretted over the possibility that since the land the homes rested upon was often leased, landowners might eventually refuse to renew a lease and borrowers might default on the mortgage rather than go through the expense of moving the home.
Also, mobile homes were often protrayed as somewhat more vulnerable to the effects of natural disasters. Many news reports have featured views of mobile homes with crumpled walls or of such homes being swept off their foundations during a storm. Even though in many cases these incidents occurred because the homes were not adequately secured to their foundations, such perceptions lingered in the minds of lenders and made it difficult to obtain a mortgage in the first place, much less secure mobile home refinancing lenders. Stricter construction standards and laws have greatly reduced the possibility that inferior products will be produced. Now manufactured homes are actually regarded with respect and admiration, as builders provide a great variety of styles for their customers. Recent laws ensure that the homes will be even more energy efficient and built with better quality materials than many homes which are built according to traditional standards and methods.
An Internet search will yield a great number of mobile home refinancing lenders who are willing to work with their customers to secure financing for a new mobile home or to discuss refinancing options. Most will refinance a Single or Doublewide mobile home, and are able to work with either a dealer or a private individual. Also, lenders are willing to fund land purchases, either separately or alongside the purchase or refinance of a mobile home. Credit card and bill consolidation services are included as part of the agreement if this is necessary. Special enticements to customers include free applications, fixed rates, and no out-of-pocket expenses for the loan process. Some companies offer the option of skipping a payment once at the customer's discretion. (This latter option may be appealing to many customers in uncertain financial times, yet actually increases the customer's interest costs in the long run.)
The programs offered by mobile home refinancing lenders fall into fairly familiar categories. One loan program may reduce the term of the loan. Loan officers analyze the situation to see if the terms can be shortened, which will decrease the number of years required to pay off the mortgage, thus saving the customer a great deal in interest costs. Also, better interest rates are usually available with a short-term loan. Another customer may benefit from the option of having a lower payment each month than the previous loan required. Land-purchase loans may be secured for either a new purchase or to grant better rates for customers with an existing mortgage. Each person's financial situation is unique, so be sure to consider the various options in relation to personal goals and finances. Carefully read and understand all the terms and rates proposed by mobile home refinancing lenders. Do some research beforehand to become familiar with mortgage and loan terms. Glossaries can be found online which can help with this issue and loan officers should be able (and willing) to explain any aspect of the loan which the customer does not understand.
Find out the answers to the following issues, which may greatly affect the cost of the loan. Identify how much money will be required by the lenders as a downpayment. Does the loan have any closing costs or fees which must be borne by the buyer? (Sometimes property taxes or insurance must be prepaid. Consider whether to pay these items as a lump sum or have them rolled into the mortgage.) Are there any balloon payments or is the mortgage a fixed-rate loan? At times, additional discounts are given if mortgage payments are deducted electronically each month. Read articles regarding mortgages and lending practices to become familiar with the main aspects of the various options which are available. That way one is able to discuss these matters intelligently with a loan officer and should end up with a better deal than a person who is totally unfamiliar with these concepts. Pay close attention to the terms of the mortgage agreement which are offered by the mobile home refinancing lenders, since thousands of dollars may be saved or lost by changes in apparently small details of the contract.
A Christian individual should be realistic about his or her financial situation as well, during these procedings. Do not attempt to buy more of a house than can be afforded. Otherwise, one may be in danger of becoming like those mentioned in Psalm 37:21 -- The wicked borroweth and payeth not again.... Interest-only loans and balloon payments may look tempting in the beginning, yet in the end these practices cost the buyer far more in ongoing interest payments. One last important item to consider is whether the savings which result from agreements with mobile home refinancing lenders are significant in terms of one's future plans. In other words, will the borrower be living in the home for a length of time which allows the costs of refinancing to be recouped? If a person plans to move before any savings will be realized, it would be better not to engage in refinancing in the first place. So research, ask questions and examine any refinancing contracts in the light of one's own particular financial situation and future plans.